10 Best Growth Stocks for the Next 5 Years

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4. Broadcom (NASDAQ:AVGO)

Average Upside Potential: 50%

EPS Growth Past 5 Years: 49.76%

Number of Hedge Fund Holders: 170

D.A. Davidson analyst Gil Luria upgraded Broadcom to Buy from Neutral on October 27 and raised his price target to $400 from $350. He argued that a valuation of about 16 times estimated 2027 earnings leaves room, that the AI cycle is not over yet, and that public offerings from leading AI labs could fund further spending on custom chips.

Investors reacted. Broadcom posted its biggest one-day gain in almost a year on November 9, as semiconductor stocks bounced back from the sell-off that opened the month. The call gave them a concrete argument for owning the stock when AI spending fears were at their peak: the valuation had come down while the earnings outlook had not. Broadcom designs custom AI accelerators and networking chips for large cloud operators, and it also owns the VMware infrastructure software business, which provides steady cash flow alongside the chip boom.

Whether VMware can stay a durable cash engine is a question we explored for Broadcom in our piece on customers reassessing private clouds. The next checkpoint is the company’s earnings report on December 9.

3. SK Hynix (NASDAQ:SKHY)

Average Upside Potential: 84%

EPS Growth Past 5 Years: 49.26%

Number of Hedge Fund Holders: N/A

Rosenblatt analyst Kevin Cassidy kept a Buy rating on SK Hynix and raised his price target to $400 from $320 on October 28, the day the memory maker reported third-quarter results. He cited a 20% sequential rise in average selling prices for DRAM, the memory used in AI servers.

Investors like what that pricing did to profitability. SK Hynix makes the memory chips used in AI servers, and its operating margin reached 80%. The company said long-term agreements already cover more than half of its 2027 and 2028 capacity. It is a leading supplier of the high-bandwidth memory that sits next to AI accelerators, so pricing power there flows directly into earnings. Management expects fourth-quarter shipments of its newest generation, HBM4, to overtake the previous one, and it sees a supply shortage lasting through 2030.

China is the main risk, because the country was a large share of first-quarter sales and local rival CXMT is gaining ground. The depositary shares slid sharply on November 5 after a Wedbush note raised export-license concerns. Whether margins that high can hold is the subject of our look at SK Hynix’s operating margin.

2. Nvidia (NASDAQ:NVDA)

Average Upside Potential: 85%

EPS Growth Past 5 Years: 95.27%

Number of Hedge Fund Holders: 285

Morgan Stanley analyst Joseph Moore kept an Overweight rating and a $300 price target on Nvidia on November 11, even as the bank removed the stock from its top picks under a stop-loss policy. His reasoning was that the AI buildout is strong and durable, with demand still exceeding supply.

That conviction is being tested. Nvidia has fallen about 30% from its October 6 high, and the board has opened an independent investigation into CEO Jensen Huang’s alleged relationship with a suspected Chinese spy. Nvidia supplies the graphics processors that power most AI data centers, so investors are weighing leadership risk against the demand picture that analysts keep describing. They still like the order book, but leadership questions are a new kind of risk for a stock that has traded mainly on demand data.

A side of the business that gets less attention is covered in our piece on Nvidia’s push to expand its autonomous driving opportunity. The next catalyst is the earnings report due November 17, where Wells Fargo analyst Aaron Rakers expects fiscal fourth-quarter revenue of $126.4 billion against a Street estimate of $124.3 billion.

1. Micron Technology (NASDAQ:MU)

Average Upside Potential: 98%

EPS Growth Past 5 Years: 70.65%

Number of Hedge Fund Holders: 184

Goldman Sachs analyst James Schneider reiterated a Neutral rating and a $1,250 price target on Micron Technology on November 10, though his reasoning leaned constructive. He said risk and reward are becoming more attractive because strong free cash flow looks highly probable in coming quarters.

Micron makes the memory chips used in AI servers, and the stock has given investors a volatile few days to test that view. The shares fell more than 15% over five sessions on fears that AI capital spending would slow after the midterms, then jumped 13.19% on November 11 after CoreWeave raised its outlook.

The swing shows how closely the stock now tracks sentiment toward data-center builders, the customers for its memory chips. Investors like the earnings power, since the company has been reporting some of the highest margins in the semiconductor industry, which is why its low multiple draws attention.

Why Micron trades at a low earnings multiple despite high margins is a question we took up recently. The Street expects earnings to grow at least 17% next fiscal year, which keeps the focus on whether memory pricing holds.

READ NEXT: Micron (MU) Looks Cheap at 5 Times Forward Earnings. Can Its Profit Boom Last? and Nvidia (NVDA) Is Trading Like Growth Will Stop. The Numbers Say Otherwise.

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